Boosting Sales with Loyalty Programs

Everyone likes to be rewarded for their loyalty. That’s why more and more marketers are offering a loyalty program these days. Direct
mail offers unique benefits for these programs because you can offer coupons, deals, and offers and encourage participation with
high-impact visual imagery that reinforces the value of the offer and excites your customers about participating in the program.

We tend to think of loyalty programs as primarily earning points to get free stuff. Buy 10 ice cream cones and get the next one free. But loyalty programs can take various forms. Here are four of the most common types:

Points-based programs: Customers accumulate points that they can redeem for products and services. The more points you earn, the more free stuff you receive.

Deals-based programs: Specific demographics within your program receive targeted deals. People with pools get 10% off pool chemicals in June, for example.

Tier-based programs: Your best customers achieve certain privileges access, and products based on their loyalty. After 12 months of subscription service, you get a free mobile phone upgrade.

Lifestyle programs: After 12 months of being a customer, you receive higher earning rates and access to a VIP Club that gives you access to benefits not available to other customers (luxury service, insider deals, sold-out tickets to popular events).

Third-party affinity programs: Draw on the value and benefits of related companies’ products and services to cross-pollinate value and exposure across multiple customer bases.

As you look to set up a loyalty program, draw your best customers into the conversation. Ask what rewards would be of most value to them. Use simple mail survey, online polls, focus groups, and other techniques to get highly valuable feedback.

Do you think a loyalty program might work for you?